Power firm AFC Energy plc (LON:AFC) has told investors it is to raise £8.1mln to help fund the continued development and commercialisation of its fuel cell technology.
The fundraising will take place in three stages; a placing of up to 58.5mln new shares, a subscription of up to 1.5mln new shares and an open offer of up to 20.7mln shares.
The issue price for all of the new shares is 10p a pop, around a 40% discount to Monday’s closing price.
The Roman Abramovic-backed company has said the cash influx will support it on “its journey to commercialisation”.
Specifically, the money will be used to fund the delivery of AFC’s commitments as part of its tie-up with Italian industrial tech firm De Nora.
Some of the money will also go towards completing the scoping study alongside another of its partners, Peel Environmental, with another chunk earmarked for operations at AFC’s demonstration plant in Stade, Germany.
Anything left over will be kept in the kitty for general admin expenses and working capital.
Shares were down 28% on the back of the news to 12p, reflecting the 40% discount.